GPS-Monitored Car Based Fees
With President Obama's transportation secretary LaHood hinting at a mile based usage fees in the recent days, there will continue to be focus put on the subject. The idea is not new and it has several studies and tests going on globally, with a few right here in the US.
The idea is to monitor road usage via GPS, and institute a time of day based variable fee. Peak times get higher fee rates, while off-peak hours get lower fee rates.
According to this article at a Euro blog, Inside GNSS a test in the US was successful at reducing congestion on the roads and reduced overall mileage driven. The savings is big for governments alike, who would not have to invest in new roads to handle the ever-increasing congestion. My hunch is that the fees would be pretty attractive and addictive, while the savings in congestion would be temporary until you achieved steady state again and started to climb as the overall system get acquainted with the new costs of doing business. For commuters who head to a job, there may not be a lot of flexibility to target the lower fee rates, but there may be the ability to lower the impact; I'd try to work from home one more day a week. Tough to do if you are a construction worker - and someone who isn't exactly in the best position to absorb more taxes.
Governments would have a hard time moving to this system alone, and leaving a gas tax behind, as the gas tax is a significant tool to impart the will of a "greener than thou" government will, on its constituents. I happen to think reduced gas consumption is a good thing, and I think low gas prices is just not where we need to be long term with the current global challenges. In my mind leaving a gas tax behind is sending the wrong message.
My hunch is that we'll see a combination of systems in the coming years. More on this at the upcoming symposium on Mileage based user fees at the Texas Transportation institute.
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Posted by Scott Martin at February 24, 2009 6:42 AM
JJ,
Maybe I should have indicated that the Obama administration was testing the idea out when Secretary Ray LaHood previously indicated - that the VMT is an idea "we should look at." I find it hard to believe that they would be so out of step so early in the administration. My hypothesis is that they tried it out, got a bad reaction and "clarified" their position.
Thanks for pointing it out.
-Scott
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